Sponsored by:
Senator STEPHEN M. SWEENEY
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Provides temporary modifications to payment and use of certain casino gaming taxes and fees due to COVID-19 Public Health Emergency and State of Emergency; allows full deduction of promotional gaming credits and certain coupons from gross revenues.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning temporary modifications to the payment and use of certain casino gaming taxes and fees due to COVID-19 Public Health Emergency and State of Emergency, and permanent modifications to the types and taxation of promotional gaming credits and amending P.L.2008, c.12.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding the provisions of the Casino Control Act, P.L.1977, c.110 (C.5:12-1 et seq.), or any law, rule, or regulation to the contrary, any license or other fee imposed on a casino licensee required to be deposited in the Casino Control Fund established by section 143 of P.L.1977, c.110 (C.5:12-143), other than as provided under subsections b. and c. of this section, shall be deferred during the period the licensee s casino hotel facility remains closed due to the COVID-19 Public Health Emergency and State of Emergency declared by the Governor in Executive Order No. 103 of 2020, and during the six-month period immediately following the date that the casinos are permitted to reopen after the declarations. The amounts deferred shall be paid by each casino licensee in equal monthly installments over the 12-month period following the deferment period.
b. The annual license fee of $500 imposed under section 140 of P.L.1977, c.110 (C.5:12-140) on each slot machine maintained for use or in use at a licensed casino establishment, and that fee imposed on a pro-rata basis, shall be waived from July 1, 2020 through June 30, 2021, inclusive. If a fee due on July 1, 2020, or a pro-rata fee, is paid by a casino licensee on each slot machine maintained for use or in use during that period, the licensee shall receive a reimbursement of that fee within 30 days following the effective date of this act, P.L. , c. (pending before the Legislature as this bill).
c. This section shall not apply to any fees imposed on a casino licensee or its Internet gaming affiliate for the issuance or renewal of any Internet gaming license or permit under section 27 of P.L.2013, c.27 (C.5:12-95.29), or any amounts required to be deposited in the Casino Control Fund under section 22 of P.L.2013, c.27 (5:12-95.24).
2. Notwithstanding the provisions of the Casino Control Act, P.L.1977, c.110 (C.5:12-1 et seq.), or any law, rule, or regulation to the contrary, any surplus funds held by the Division of Gaming Enforcement in the Casino Control Fund, or held by the division due to an overpayment of the investment alternative tax imposed pursuant to section 3 of P.L.1984, c.218 (C.5:12-144.1) in the case of a downward adjustment of a casino licensee s audited gross revenues, shall be returned to each casino licensee in proportion to the licensee s share of the surplus or overpayment, if any, within five business days following the effective date of this act, P.L. , c. (pending before the Legislature as this bill), and then, for the six months following the effective date of this act, within 30 days following the end of each fiscal quarter, to mitigate the impacts on the casino licensee due to the COVID-19 Public Health Emergency and State of Emergency declared by the Governor in Executive Order No. 103 of 2020.
3. Notwithstanding the provisions of the Casino Control Act, P.L.1977, c.110 (C.5:12-1 et seq.), section 7 of P.L.1996, c.118 (C.5:12-173.3a), and sections 2 and 3 of P.L.1993, c.159 (C.5:12-173.2 and C.5:12-173.3), the minimum charge for and minimum fee imposed upon the use of a parking space for the purpose of parking, garaging, or storing a motor vehicle in a parking facility or property owned or leased by a licensed casino hotel, or by any person on behalf of a casino hotel, shall not be in effect and shall not be collected from the period beginning on the date that the casinos are permitted to reopen after the COVID-19 Public Health Emergency and State of Emergency declarations, and ending on the first day of the 25th month thereafter.
The Casino Reinvestment Development Authority may use or redirect any funds under its purview, notwithstanding that such funds may be dedicated to other purposes, to replace the amounts from the minimum charge or fee for the payment of any bonds secured by proceeds from such charges or fees.
4. Notwithstanding the provisions of the Casino Control Act, P.L.1977, c.110 (C.5:12-1 et seq.), section 6 of P.L.2003, c.116 (C.5:12-145.8), or any other law, rule, or regulation to the contrary, the fee of $3 per day imposed on each hotel room in a casino hotel facility that is occupied by a guest, for consideration or as a complimentary item, shall be waived commencing on the effective date of this act, P.L. , c. (pending before the Legislature as this bill) through December 31, 2020. The fee shall be imposed again commencing January 1, 2021 and thereafter. The Casino Reinvestment Development Authority may use or redirect any funds under its purview, notwithstanding that such funds may be dedicated to other purposes, to replace the amounts from the hotel room fee for the payment of any bonds secured by the fee s proceeds.
5. Notwithstanding the provisions of P.L.1991, c.376 (C.40:48-8.45 et seq.), or any other law, rule, or regulation to the contrary, the fee of $2 per day for each occupied room in the case of any hotel in the eligible municipality which provides casino gaming, and the fee of $1 per day for each occupied room in the case of the other hotels or transient accommodations in the eligible municipality shall be waived commencing on the effective date of this act, P.L. , c. (pending before the Legislature as this bill) through December 31, 2020. The fees shall be imposed again commencing January 1, 2021 and thereafter.
6. a. Notwithstanding the provisions of the Casino Control Act, P.L.1977, c.110 (C.5:12-1 et seq.), or any law, rule, or regulation to the contrary, a casino licensee reopening a casino property following the property s closure due to the COVID-19 Public Health Emergency and State of Emergency declarations issued by the Governor under Executive Order No. 103 of 2020, shall be entitled during the 24-month period commencing on the date that the casinos are permitted to reopen after the declarations and ending on the last day of the 24th month thereafter to receive a reduction in their tax liability on the 8 percent tax on gross revenues, as that term is defined in section 24 of P.L.1977, c.110 (C.5:12-24) and imposed under section 144 of P.L.1977, c.110 (C.5:12-144), and on the investment alternative tax on such gross revenues imposed under section 3 of P.L.1984, c.218 (C.5:12-144.1). The reduced tax liability required to be provided under this act, P.L. , c. (pending before the Legislature as this bill), shall be calculated in accordance with subsection b. of this section, and shall be subject to the provisions specified under subsection c. of this section.
b. A casino licensee reopening a casino property following its closure due to the emergency declarations as provided under subsection a. of this section shall be entitled to a reduction of the licensee s gross revenues tax and investment alternative tax liabilities on a monthly basis, which obligations shall be calculated subject to rounding, as follows:
(1) for each calendar month in which the gross revenues are less than 25 percent of the gross revenues for the same calendar month immediately prior to March 1, 2020, the gross revenues tax and investment alternative tax obligations shall be zero for each tax;
(2) for each calendar month in which the gross revenues are at least 25 percent an